VettaFi highlights FPX ETF for investors seeking exposure in IPOs
Roxanna Islam, CFA, CAIA, recently published an article discussing how ETF investors can capitalize on the anticipated increase in deal activity in 2024. The article prominently features the First Trust U.S. Equity Opportunities ETF (FPX), which is based on the IPOX® 100 U.S. Index, as the leading ETF focusing on IPOs. Islam highlights FPX's unique methodology, which allows holdings to cycle out every four years, providing investors with a longer investment horizon.
Furthermore, Islam emphasizes that IPO-focused ETFs like FPX make the IPO market more accessible to retail investors who may lack the time and resources to thoroughly research new issues. By investing in FPX, retail investors can gain exposure to the growth potential of newly listed companies without the need for extensive due diligence on individual stocks.
As the IPO market is expected to pick up in 2024, FPX is well-positioned to benefit from this trend and offer investors an attractive opportunity to participate in the growth of newly public companies.
